Wednesday, December 06, 2006 10:13:59 AM
SPI
Operations update
CSRI has made significant progress this year in the development of a pilot project at Farrell Creek. To the end of September, three test holes c-83-H, b-92-H and b03-I have been completed and production tested in the range of 125 thousand cubic feet per day to 300 thousand cubic feet per day. Efforts to optimize production from these test holes are continuing.
Since Sept. 30, a fourth test hole, b-02-I, has been drilled and was successfully fracture stimulated on Nov. 16, 2006. This is the fourth well that has been completed for production and is currently flowing water and natural gas to a temporary facility. Within the next week, the company plans to install production tubing and tie in this test hole to a more permanent facility which will allow proper measurement of water and natural gas. Capital costs associated with the b-02-I test hole have been reduced relative to the previous three test holes completed for production.
Landowner approval has been received for the right of way of the company's planned pipeline connecting the proposed field processing facilities at Farrell Creek with the Duke Energy sales pipeline. This approval will enable the hot-tap of the Duke Energy pipeline to proceed. CSRI has retained Polaris Engineering Ltd. to lead the design and construction of the field facilities, pipeline and gathering system required to tie in the Farrell Creek pilot project. Subject to the performance of the pilot project and natural gas prices, the company's goal is to have these facilities in place and natural gas flowing to market during the third quarter of 2007.
A scheme application for Farrell Creek has been prepared and was submitted to the British Columbia Oil and Gas Commission for approval. Regulatory approval of the scheme application will facilitate timely development of the pilot project and extend the confidentiality period for certain technical information. Approval may be received by the first quarter of 2007.
Operations update
CSRI has made significant progress this year in the development of a pilot project at Farrell Creek. To the end of September, three test holes c-83-H, b-92-H and b03-I have been completed and production tested in the range of 125 thousand cubic feet per day to 300 thousand cubic feet per day. Efforts to optimize production from these test holes are continuing.
Since Sept. 30, a fourth test hole, b-02-I, has been drilled and was successfully fracture stimulated on Nov. 16, 2006. This is the fourth well that has been completed for production and is currently flowing water and natural gas to a temporary facility. Within the next week, the company plans to install production tubing and tie in this test hole to a more permanent facility which will allow proper measurement of water and natural gas. Capital costs associated with the b-02-I test hole have been reduced relative to the previous three test holes completed for production.
Landowner approval has been received for the right of way of the company's planned pipeline connecting the proposed field processing facilities at Farrell Creek with the Duke Energy sales pipeline. This approval will enable the hot-tap of the Duke Energy pipeline to proceed. CSRI has retained Polaris Engineering Ltd. to lead the design and construction of the field facilities, pipeline and gathering system required to tie in the Farrell Creek pilot project. Subject to the performance of the pilot project and natural gas prices, the company's goal is to have these facilities in place and natural gas flowing to market during the third quarter of 2007.
A scheme application for Farrell Creek has been prepared and was submitted to the British Columbia Oil and Gas Commission for approval. Regulatory approval of the scheme application will facilitate timely development of the pilot project and extend the confidentiality period for certain technical information. Approval may be received by the first quarter of 2007.
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